The futures for major U.S. stock indices are pointing lower this morning. The S&P 500 futures have dropped 16 points, Nasdaq 100 futures are down by 42 points, and Dow Jones Industrial Average futures are 219 points lower.
Recent earnings reports have received varied responses. IBM (IBM) and Chipotle Mexican Grill (CMG, Financial) are seeing a decline in their stock prices after their latest earnings. In contrast, Texas Instruments (TXN, Financial) and ServiceNow (NOW) are trading higher following their earnings announcements.
There is news about potential changes in tariffs, with President Trump indicating an exemption for car parts from China tariffs, while maintaining a 25% tariff on autos. Additionally, automakers may be exempt from tariffs on steel and aluminum.
The yield on the 10-year Treasury note is down to 4.35%, a decrease of five basis points, while the 2-year yield has fallen four basis points to 3.82%.
Today's News
Tesla (TSLA, Financial) is advancing its robotaxi service by testing it with employees in Austin and the Bay Area. The service, which utilizes the Full Self-Driving (FSD) system, is expected to launch in the summer of 2025. Despite the supervised nature of FSD, Tesla is expanding its autonomous driving efforts, competing with Waymo (GOOGL, Financial) in the burgeoning robotaxi market.
Dow (DOW, Financial) reported a first-quarter loss of $290 million, attributing the decline to pricing pressure and high energy costs. In response, the company has initiated a $6 billion cash support plan, including asset sales and spending cuts, to navigate the challenging global demand environment.
Google (GOOGL, Financial) is requiring some remote workers to return to the office under a hybrid work model, affecting those near office locations. This move aligns with Google's emphasis on in-person collaboration, as the company continues to invest in AI while managing costs across its teams.
Energy Transfer (ET, Financial) announced a quarterly dividend of $0.3275 per share, marking a 0.8% increase. The company is also seeking an extension for its Lake Charles LNG construction deadline, highlighting its focus on natural gas projects.
IBM expressed caution regarding its Consulting business, citing potential impacts from U.S. Department of Government Efficiency initiatives. Despite these challenges, IBM remains confident in its resilience and strength in navigating economic uncertainties.
Uber (UBER, Financial) has partnered with Volkswagen's autonomous mobility unit to launch self-driving ride services in the U.S., starting in Los Angeles by 2026. The collaboration will deploy electric, autonomous ID. Buzz vehicles, initially with human operators to ensure safety.
Chipotle (CMG, Financial) reported a decline in same-store sales for the first time since the pandemic, citing a slowdown in consumer spending. Despite a 6.4% revenue increase, the company faces challenges from higher inflation and newly enacted tariffs affecting its cost structure.
Southwest Airlines (LUV, Financial) reported a decline in passenger revenue and increased costs, overshadowing its better-than-expected first-quarter results. The airline withdrew its EBIT guidance amid uncertain booking trends, focusing on strategic changes to enhance revenue.
Mobileye Global (MBLY, Financial) saw a 4% premarket rise after reporting strong first-quarter revenue that exceeded estimates. The company reaffirmed its full-year outlook, driven by robust business development and significant design wins in the autonomous driving sector.
Aurora Innovation (AUR, Financial) is set to launch its first fully autonomous truck on a 200-mile route between Dallas and Houston. This milestone marks a significant step in the autonomous trucking industry, as the company plans to remove safety drivers from its vehicles.
Texas Instruments (TXN, Financial) reported strong first-quarter results and a positive outlook, indicating a recovery in the industrial semiconductor market. This performance boosted shares of TXN and its competitors, reflecting a synchronized recovery across various end markets.
Lam Research (LRCX, Financial) shares rose after its fiscal third-quarter results and guidance exceeded expectations. Analysts remain optimistic about Lam's consistent execution and potential for continued growth, despite broader negative sentiment in the semiconductor equipment sector.
Enbridge (ENB, Financial) maintained its quarterly dividend, continuing its streak of gains amid market turbulence. The company's strategic projects, including the Line 5 tunnel review, underscore its commitment to infrastructure development and shareholder returns.
GuruFocus Stock Analysis
- IBM Tanks 6.8%--But Its $6B AI Engine Might Be the Real Story by Khac Phu Nguyen
- Tesla's Robotaxi Hits Roads in Two Cities, Logs 15,000 Miles Ahead of Full Rollout by Nauman khan
- S&P 500, Dow, Nasdaq Futures Fall as U.S.-China Trade Hopes Fade by Nauman khan
- BYD Q1 Earnings Preview: What to Expect From Upcoming Report by Nauman khan
- IBM Stock Tumbles 7% After Q1 Segment Weakness Overshadows Guidance by Nauman khan
